Question :

Depreciation is a __________.

Option 1:

Cash expenditure

Option 2:

Cash operating expense

Option 3:

Non- cash non-operating expense

Option 4:

Non-cash operating expense

Question : Which of the following statements is incorrect?

Option 1: Cash Flow Statement is not a substitute for Income Statement

Option 2: Cash Flow Statement shows only the inflows and outflows of Cash

Option 3: Income Statement shows both cash and non-cash items of revenue nature

Option 4: None of the above

Question : Which of the following statements about the statement of cash flow is not correct?

Option 1: Cash flow statement is part of financial statement

Option 2: Cash flow statement is prepared on cash basis of accounts

Option 3: Cash flow statement is substitute of cash account

Option 4: Cash flow reports are generally prepared at the end of the accounting year

Question : Which of the following statements is true?

Option 1: Cash Flow Statement shows inflows and outflows of Cash and Cash Equivalents.

Option 2: Cash Flow Statement gives information about sources and applications of Cash and Cash Equivalents for a specific period.

Option 3: It helps in planning investments and assessing the financial requirements of the enterprise.

Option 4: All of the above

Question : Which of the following statements is true?

Option 1: Cash Flow Statement shows inflows and outflows of Cash and Cash Equivalents.

Option 2: Cash Flow Statement gives information about sources and applications of Cash and Cash Equivalents for a specific period.

Option 3: It helps in planning investments and assessing the financial requirements of the enterprise.

Option 4: All of the above